Chelsea and Tottenham have been dealt a huge setback in the January transfer window, with Spanish side Malaga insisting they will reject all bids for in-demand midfielder Isco.

Spurs have been long-term admirers of the 20-year-old and Chelsea have upped their interest in recent weeks, while Manchester United were also thought to be keen on bringing him to England.

But Malaga, who currently sit fourth in La Liga, say they are determined to keep hold of their highly rated playmaker despite the economic plight of the club, as they look to continue their excellent form in their maiden Champions League campaign.

Last week, Malaga were banned from European competition for one season by Uefa after failing to pay bills, but will not be lured into selling any of their star players in cut-price deals, as they did over the summer when Arsenal snapped up Santi Cazorla for £16m.

The Spanish outfit face FC Porto in the last 16 of the Champions League, with Isco proving a key player as they topped Group C ahead of AC Milan, Zenit St Petersburg and Anderlecht.

The Under-21 international has scored six goals in 22 outings for his club this term, most recently netting in their 3-2 win over Real Madrid just before Christmas.